CABINET ON Monday approved drafting instructions to amend the General Consumption Tax (GCT) Act which would allow persons dissatisfied with a decision of the Commissioner of Taxpayer Audit and Assessment to appeal.
The appeal, according to Minister of Information Burchell Whiteman, could include decisions "not related to an assessment" and would be done with the Taxpayer Appeals Department. The proposed amendment would now have to go through the upper and lower Houses of Parliament for a vote.
"This is an important piece of legislation," the Minister told reporters at a post-Cabinet press briefing. "People will be able to appeal against what they perceived to be an unfair assessment ... whether it has to do with uniform allowances or any other grievances."
Under the current GCT Act, most goods and services are taxed at 15 per cent except for motor vehicles and listed construction materials and tourism activities. Some, however, are taxed at zero per cent (zero-rated) and some are GCT-exempt, ie, registered taxpayers charge GCT at 15 per cent on those items which attract the tax.
Where goods and services are zero-rated, registered taxpayers do not charge GCT on sales of these goods and services.
Registered taxpayers, however, are a ble to claim an Input Tax Credit for any GCT paid on business purchases which are made in order to manufacture or provide these zero-rated goods and services. But when goods and services are GCT-exempt, no GCT is charged on these items. However, unlike zero-rated goods, registered taxpayers are not able to claim an Input Tax Credit on the taxable goods and services used to provide exempt goods and services.
Mr. Whiteman said the Cabinet also approved drafting instruction to amend the First Schedule Section 3 of the Parliament (Integrity of Members) Act. When amended, the Act will permit the Commission's membership to include "Persons who, in the opinion of the Governor-General, are of high integrity and are able to exercise competence, diligence and sound judgment in fulfilling their responsibilities under the Parliament Integrity of Members Act".
The Minister also said Cabinet had approved the award of a contract to install a "Land Registration and Parcel Data Management System" in the titling and surveying areas of the National Land Agency (NLA).
The contract will be awarded to Fujitsu ICL Jamaica Limited in the amount of US$1,240,833. The use of this system, he said, "will allow customers to conduct lodgements of various documents at NLA regional offices, thus expanding the one-stop shop concept".
He reported also that new boards of directors had been approved for the National Water Commission (NWC) and the National Housing Development Corporation (NHDC) and that Prime Minister P.J. Patterson will be off to Cuba this weekend where he will join other CARICOM heads as guests of President Fidel Castro.
